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Matteo Renzi (left) is facing a challenge from justice minister Andrea Orlando (right) for the leadership of the Democratic Party, but that’s the least of the Italian left’s worries these days. (Facebook)

The message from former prime minister Matteo Renzi to the Italian left couldn’t be more clear:

Unite or die.

Unfortunately for Renzi, who hopes to regain the leadership of the center-left Partito Democratico (PD, Democratic Party) and lead it to victory in the next Italian election, no one seems to be listening to him.

Even worse, it is Renzi’s my-way-or-the-highway leadership style and his continued insistence on personally leading the Italian left in the next election that has forced such a severe schism inside a party that has struggled since its foundation a decade ago to bridge a divide that spans Catholic social conservatives to outright democratic socialists.

In the span of just 10 days, Renzi’s heavy-handed approach — designed to entrench him as the Democratic Party leader — has instead launched a fresh leadership contest (with yet another preliminary struggle over the timing of the contest). More ominously, a breakaway faction split from the party over the weekend to form a new group, the Movimento Democratico e Progressista (MDP, Democratic and Progressive Movement) that could drain the Democratic Party of crucial support in the next election. The new group already claims nearly 40 deputies in the lower house of the Italian parliament and 20 senators in the upper house.

There’s still time for a rapprochement.

The faction-ridden Democrats have always struggled with unity, but there’s a real chance that the centrosinistra‘s continued inability to unite in 2017 (and Renzi’s inability to win over skeptics) could tilt Italy’s next government to anti-EU populists.

With the traditional Italian centrodestra (‘center-right’) divided and weak in the post-Berlusconi era, unless the broad centrosinistra (‘center-left’) finds a way to heal the wounds, the infighting could allow the anti-austerity, eurosceptic and increasingly illiberal protest movement, the Movimento 5 Stelle (M5S, the Five Star Movement), to win the next Italian elections. Those elections must be held before May 2018.Continue reading Italian left threatens to upend Renzi plans to continue leading Democratic Party→

Just two months into his leadership of Italy’s main center-left party, the Partito Democratico (PD, Democratic Party), Florence mayor Matteo Renzi has found a way to balance his criticism of prime minister Enrico Letta’s government against the notion that he’s working against Letta, a former deputy leader of his own party.

He’s decided that it will simply be easier to lead Italy’s government himself — and the past four saves have played out dramatically as Renzi engineered the collapse of Letta’s government.

Initially, Renzi’s gambit looks like it’s going to work. The Democratic Party national leadership backed Renzi’s plan almost unanimously after a meeting earlier Thursday, where Renzi argued that the party must ‘uscire dalla palude‘ (‘get out of the swamp’) to effect change in Italy.

As a formal matter, Italian president Giorgio Napolitano will consult with the leaders of all of Italy’s political parties about forming a new government, but the outcome seems almost certain. Renzi, at age 39, will become the youngest prime minister in Italian history, taking over essentially where Letta leaves off.

It’s an audacious and skilled move. It’s one part Giulio Andreotti (note Renzi’s mastery of internal PD politics). It’s one part Silvio Berlusconi (note Renzi’s mastery of the kind of political theater it takes to wage a successful campaign against your own party’s government). It’s also one part Michael Corelone — Renzi showed this week he has the ruthlessness to pull the trigger when it counts. (Can you imagine what British policy might look like today if former foreign minister David Miliband had the same instincts five years ago?)

Renzi expects to form a government that includes the Democratic Party, the centrist Scelta Civica (SC, Civic Choice), a group of reform-minded moderates that supported former prime minister Mario Monti, and the Nuovo Centrodestra (NCD, the ‘New Center-Right’), a breakaway faction from former prime minister Silvio Berlusconi’s rechristened Forza Italia. That’s the same coalition that Letta led, with the same strengths and shortcomings.

Over the weekend, former prime minister Silvio Berlusconi, the leader of Italy’s largest center-right party, Forza Italia, and Matteo Renzi, the leader of Italy’s largest center-left party, the Partito Democratico (PD, Democratic Party), joined forces (pictured above) to introduce the blueprint for a new electoral law.

Notably, the deal didn’t include input from prime minister Enrico Letta, a moderate who leads a fragile ‘grand coalition’ government that includes not just his own Democratic Party, but centrists close to former technocratic prime minister Mario Monti and one of Italy’s two main center-right blocs, the Nuovo Centrodestra (NCD, the ‘New Center-Right’), led by deputy prime minister and interior minister Angelino Alfano. The Alfano bloc split two months ago from Berlusconi’s newly rechristened Forza Italia, which pulled its support from the Letta government at the same time.

The deal is a political masterstroke by Renzi because it makes him appear to have stolen the initiative from Italy’s prime minister. Letta formed a government in May 2013 with the two priority goals of passing a new election law and deeper economic reforms. Despite a ruling in December 2013 that Italy’s current elections law is unconstitutional, Letta’s government has not yet put forward an alternative acceptable to the three main groups in the coalition. So the Renzi-Berlusconi deal is now the only concrete proposal — it backs up the talk that Renzi, the 39-year-old Florence mayor, will be a man of action in Italian politics. Renzi won the party’s leadership in a contest in November 2013 over token opposition. Renzi is neither a minister in Letta’s cabinet nor a member of the Italian parliament, and he’s been more of a critic of the current government than a supporter of a prime minister who until recently was the deputy leader of Renzi’s own party.

By way of background (those familiar can skip the following three paragraphs):

Italy has gone through a few different electoral systems, but most of them have featured either closed-list or only partially open-list proportional representation. Reforms in 1991 and 1993 transformed the previous system in what’s informally been called Italy’s first republic, which spanned the postwar period until the collapse of the dominant Democrazia Cristiana (DC, Christian Democracy) in a series of bribery and corruption scandals collectively known as Tangentopoli (‘Bribesville’). But the current system dates to 2005, when Berlusconi ushered in a new law that everyone (including Roberto Calderoli, who introduced the 2005 legislation) now agrees is awful and which Italy’s Corte costituzionale has now invalidated.

The current law, which governed Italy’s elections in 2006, 2008 and 2013, provides for a national proportional representation system to determine the 630 members of the lower house, the Camera die Deputati (Chamber of Deputies). The party (or coalition) that wins the greatest number of votes nationwide wins a ‘bonus’ that gives it control of 55% of the lower house’s seats, not unlike the Greek electoral system. But the 315 members of the upper house, the Senato (Senate), are determined on a regional PR basis — the top party/coalition in each of Italy’s 20 regions wins 55% of the region’s seats. That means, however, that one party/coalition can hold a majority in the lower house, but wield much less than a majority in the upper house.

That’s the exact situation in which Italy found itself after the February 2013 elections, when the Democratic Party and its allies in the centrosinistra (center-left) coalition narrowly edged out Berlusconi’s centrodestra (center-right) coalition. Beppe Grillo’s protest Movimento 5 Stelle(M5S, the Five Star Movement) followed closely behind in third place. It meant that while the Italian left controlled the Chamber of Deputies, it couldn’t muster a majority in the Senate. After a three-month political crisis that ended with the inability to elect a new Italian president (Italy’s parliament ultimately decided to reelect the 88-year-old Giorgio Napolitano to an unprecedented second seven-year term), the Democratic Party’s leader Pier Luigi Bersani resigned, and Napolitano invited Letta to form Italy’s current government.

The Renzi-Berlusconi deal sketches out an electoral reform on roughly the following lines:

The Chamber of Deputies would become, by far, the predominant chamber of Italian lawmaking. The Senate would hold fewer powers as a region-based chamber. Italy’s national government would also consolidate more powers away from Italy’s regions.

Deputies would be elected, as they are now, on the basis of national, closed-list proportional representation, which concentrates power in the hands of party leaders and elites (as opposed to open-list, which would allow voters to choose the members that represent them in parliament). An alternative might be something akin to the proportional aspect of the Spanish electoral system — in Italy, it would mean a proportional system divided into 118 constituencies, each of which elects four or five deputies.

If a party/coalition wins over 35% of the vote, it will still yield a ‘majority bonus’ of either 53% or 54% of the seats in the Chamber of Deputies. If no party/coalition wins over 35%, the top two parties/coalitions will hold a runoff to determine who wins the majority bonus.

Italy would introduce a threshold for parties in order to reduce the fragmentation of Italy’s politics — a party running outside a coalition would need to win 8% of the vote and a party running inside a coalition would need to win 4% or 5% of the vote running outside a coalition (though the thresholds would be much lower in a multi-district ‘semi-Spanish’ system).

The deal would not replicate the French system, which elects legislators to single-member districts in a two-round election, and which has been discussed often as an alternative for Italy.

The details are not so important at this stage, because they could change as the Renzi-Berlusconi deal begins the long process of turning into legislation. But if Renzi can pull the majority of the Democratic Party along, and if Berlusconi’s Forza Italia supports the deal, the two groups could steamroll Italy’s smaller parties, even in the Senate. If Alfano and his bloc joins, the deal would be unstoppable. Renzi has already won a majority of the party’s executive committee (a promising first sign), and Alfano has indicated that he’s open to the reform (though less excited about closed lists).

In US politics, the ‘Sister Souljah’ moment dates from the 1992 presidential campaign when Bill Clinton, then the young governor of Arkansas, repudiated the words of a prominent hip-hop emcee and activist (Sister Souljah) by comparing her words to those of prominent white supremacist David Duke. In scolding her, Clinton distanced himself from African-American civil rights activist and former presidential candidate Jesse Jackson, thereby signaling his willingness to stand up to Jackson and the various interest groups that then dominated the Democratic Party.

Since 1992 the moniker has been applied to any situation where a politician rebukes extreme statements or views most associated with that politician’s own political party or identity.

So it was in Italy last week when the new leader of Italy’s center-left Partito Democratico (PD, Democratic Party), Florence mayor Matteo Renzi caused a rift on the Italian left that precipitated the resignation of deputy finance minister Stefano Fassina from Italy’s beleaguered coalition government.

Fassina resigned after Renzi dismissed his calls for a cabinet reshuffle. When asked about Fassina’s proposal by the press, a swaggering Renzi responded with a simple, ‘Chi?’ (Who?). It was a stark reminder that Renzi intends to drag Italy’s main leftist party to more centrist ground in the same way that Clinton pulled the Democrats to the middle in the 1990s and that Tony Blair pulled the Labour Party in the United Kingdom.

It’s a calculated bet, not without some risk, that Renzi can slap down his leftist flank (presumably expanding his appeal to moderate voters) without alienating the left so much that he causes the Democratic Party to crumble.

Fassina represents the socialist-left wing of the Democratic Party that Renzi now leads, after winning the leadership contest in December 2013 against token opposition with 68% of the vote. Renzi’s coronation, however, obscures the real fissures within the Democratic Party. In the contest to determine the prime ministerial candidate of the Italian centrosinistra (center-left) in November 2012, former PD leader Pier Luigi Bersani bested Renzi in December 2012 by a whopping margin of 61.1% to 38.8%.

Fassina, as a member of the current grand coalition government headed by prime minster Enrico Letta, has been incredibly skeptical of spending cuts and other forms of budget austerity. Fassina is the most well-known of a small group of rising leftists known as the Giovani Turchi (‘Young Turks’) within the party that want to pull it further to the social democratic left, a group that also includes Matteo Orfini and environmental minister Andrea Orlando. That’s not necessarily a bad space to occupy in Italian politics — it’s a tradition that pulls both from the humanism of the historical Italian left and the Catholic social teaching of the historical Italian right.

If Matteo Renzi’s victory yesterday in the leadership contest for Italy’s center-left Partido Democratico (Democratic Party) was widely expected, what happens next is anything but clear.

Though Renzi, the popular 38-year-old mayor of Florence, campaigned (unsuccessfully) to be the prime ministerial candidate of the broad centrosinistra (center-left) coalition just over a year ago on a platform of sweeping generational change within both the Italian left and right, he’s emerged today to a new landscape.

Instead, Italy is governed today by two relatively young politicians — prime minister Enrico Letta (age 47) and deputy prime minister Angelino Alfano (age 43). The Democratic Party’s previous leader, the colorless Pier Luigi Bersani, stepped down after internal revolts against his preferred choice for Italy’s president (ultimately, Italy’s center-right and center-left coalesced around a second term for the incumbent, Giorgio Napolitano). The dominant figure of the Italian right for the past two decades, Silvio Berlusconi, was evicted late last month from the Italian Senato (Senate) in connection with his tax fraud conviction, and Alfano and the other center-right ministers in the current coalition government refused to join Berlusconi’s newly rechristened Forza Italia, forming their own alternative Nuovo Centrodestra (New Center-Right).

That’s taken some of the wind out of Renzi’s populist ‘pox-on-both-your-houses’ message, which shares more than a little in common with that of Beppe Grillo’s anti-austerity protest group, the Movimento 5 Stelle (M5S, the Five Star Movement).

In essence, Renzi’s victory means that the Italian left now has two leaders — Letta, who leads the coalition government, and Renzi, who will lead the party. Renzi won’t join Letta’s cabinet, but the two have pledged to work together, even though Renzi often pledged during the leadership contest to push Letta harder to produce tangible reform legislation. What’s most clear is that the Letta-Renzi rivalry will now become one of the most central dynamics of Italian politics — more so than the recent split between Berlusconi and Alfano on the Italian right.

In many ways, Renzi is becoming for the Italian left what Berlusconi has now become to the Italian right — a key leadership figure who is sufficiently removed from the current coalition government that he can run against the Letta government in the next elections. Although Berlusconi formally pulled out of the coalition while Renzi, ostensibly, still supports Letta’s government, both Berlusconi and Renzi (whose populism has caused more than a few comparisons to Berlusconi) will exert significant pressure on Italy’s government from the outside.

Renzi won 68% of the Democratic Party leadership contest on Sunday, defeating both Gianni Cuperlo (18%) and Giuseppe Civati (14%). Cuperlo, a member of Italy’s Camera dei Deputati (Chamber of Deputies) whose background lies within the socialist/communist tradition of the Italian left, not the Christian democratic tradition, had the support of Bersani, former prime minister and foreign minister Massimo D’Alema, environmental minister Andrea Orlando, economic development minister Flavio Zanonato and Tuscan regional president Enrico Rossi — a particularly important endorsement, given that Florence is the largest city in Tuscany. Ultimately, however, it wasn’t enough to stop Renzi, who routinely tops polls as Italy’s most popular politician.

Over 2.5 million party members voted in the election, bolstering Renzi’s claim that he can mobilize broad support for the Democratic Party in advance of Italy’s next elections.

Letta’s incentive is to hold onto power as long as possible in order to enact the kind of economic and labor market reforms that could unlock growth in the depressed Italian economy and make Italian exports more competitive globally, and to enact a new election law following the Italian constitutional court’s ruling last week that the current unwieldy law is unconstitutional. If Letta continues as prime minister through 2015 and manages to achieve some success, there’s always a chance that Letta could emerge as the centrosinistra‘s standard-bearer — Letta will have demonstrated that his government has accomplished the change that Renzi has only been able to promise.

Renzi’s incentive is for Letta’s unwieldy coalition to hold on just long enough to unite Democratic Party behind Renzi’s leadership, presumably boost the centrosinistra‘s poll numbers, pass a new electoral law, and then head into elections relatively soon if Letta’s coalition fails (as is expected) to enact economic reforms. The longer it takes for a new election, the more likely it will be that Renzi’s star will fade as he becomes more associated with the Letta government — if the Letta government fails, Renzi risks being tainted with it by association; if the Letta government succeeds, Letta himself will obviously want to become the prime ministerial candidate.

While it’s generally assumed today that Renzi — and not Letta — will lead the centrosinistra into the next Italian elections, Renzi has many enemies within the Democratic Party, including Bersani, D’Alema and much of the old guard who resent Renzi’s attacks on their leadership, as well as union leaders and other old-left stalwarts who fear that Renzi is a liberal ‘third way’ reformist in the mould of former US president Bill Clinton and former UK prime minister Tony Blair. Renzi, who is more popular with the wider electorate than within the centrosinistra, has called for lower taxes and a more comprehensive approach to economic reform.

There’s not much to say about the decision of Italy’s upper house of parliament, the Senato (Senate), to expel former prime minister Silvio Berlusconi last week.

Berlusconi, convicted on a tax fraud charge related to his media company, faces a year of community service and future legal troubles, most notably over charges of soliciting sex from underage prostitutes.

But the fallout from Berlusconi’s most recent political fall dropped long before his expulsion, as a new generation of Italian political leadership has increasingly taken center-stage in Italian politics.

The first sign was the decision among the center-right ministers in the current ‘grand coalition’ government headed by center-left prime minister Enrico Letta to push back against Berlusconi’s September attempt to bring down the government through a vote of no confidence. Ostensibly, Berlusconi was registering disapproval over the rise of Italy’s VAT from 21% to 22%, but he certainly must have hoped that he could marshal the center-right’s unity to bring down the Letta government, thereby bringing about new elections before the Senate even had a chance to expel him. Despite initially supporting Berlusconi (who has never served as a minister in the Letta government), deputy prime minister Angelino Alfano and the other ministers gradually pulled away from Berlusconi’s position. By the time that the Italian parliament voted, Berlusconi himself had resigned to supporting Letta’s government.

The second sign was the formal rupture in mid-November of the party formerly known as Il Popolo della Libertà (PdL, People of Freedom). When Berlusconi tried to rechristen the party under the name of his initial 1994 party, Forza Italia, Alfano and the other moderates within the party pulled out of Forza Italia to form their own bloc, the Nuovo Centrodestra (New Center-Right). The split meant that Alfano and his allies would continue to support the coalition government and that Berlusconi and his shrinking core of allies would pull their support from the coalition government — it’s a mutually convenient arrangement for both Berlusconi and Alfano, who remain united over their opposition to Berlusconi’s eviction last week and who would still run together under the same broad centrodestra (center-right) umbrella in the event of a new election. Alfano can play the role of a statesman, and Berlusconi, free from the burdens of government (if not free from the demands of criminal liability) will be able to attack Letta and the center-left without abandon.

For his part, Letta will call a new no-confidence vote on December 11 in the wake of the center-right split, asserting control over his government in the post-Berlusconi era, giving Letta a new chance to deliver on the two major issues that his coalition was designed to address — fiscal reforms to make the Italian economy more competitive and election reforms to fix a helter-skelter system that’s partly responsible for the inertia of Italian government.

Compared to those two efforts, the formal vote to kick Berlusconi out of the Senate was a relatively minor affair.

Berlusconi supplanted Alfano, a former minister of justice and Berlusconi’s one-time protégé, to lead the center-right in the election campaign earlier this year. Berlusconi’s shrewd success showcased his residual appeal to Italian voters — Berlusconi powered the centrodestra from a huge deficit to coming within 0.4% of defeating the centrosinistra (center-left) coalition. It’s now a cliché to say that it’s never wise to count Berlusconi out, due not just to Berlusconi’s two decades at the center of Italian politics and power, but also to his wealth and ability to shape opinion through the ownership of much of Italy’s private media.

Polls showed an uptick in Berlusconi’s popularity in the wake of the Senate’s decision, and a December 2 Tecnè poll found that his new Forza Italia still wins about 22% of Italian voters — that’s just around 1% less than Beppe Grillo’s protest Movimento 5 Stelle (M5S, the Five Star Movement) and around 4% less than Italy’s main center-left party, the Partido Democratico (PD, Democratic Party). While Alfano’s New Center-Right wins just 6.9% of the vote, the centrodestra would win around 36% of the vote if an election were held tomorrow to just 31% for the centrosinistra.

For one day, at least, gerontocratic Italy was no country for old men.

In his address to the Italian Senato (Senate), center-left prime minister Enrico Letta, just five months into the job, quoted former postwar Italian president Luigi Einaudi to announce as much to his allies and enemies alike in a speech that preceded a confidence vote for his beleaguered government:

Italian politics, if nothing else, provides many fleeting moments, and Letta (at age 47, one of Italy’s youngest prime ministers) today seized a huge victory, as did Angelino Alfano, the 42-year-old center-right deputy prime minister and minister of the interior. Both seized their moments at the expense of 77-year-old Silvio Berlusconi, who remains the central figure in Italian politics 19 years after his first election as prime minister — though perhaps not for much longer.

Letta easily won a vote of confidence in his government after a showdown that ultimately caused more damage to Italy’s centrodestra (center-right) than to Letta’s government that began four days ago when Berlusconi tried to pull his party’s five ministers out of the current coalition government and thereby end Letta’s short-lived government in favor of early elections.

Alfano, Berlusconi’s top deputy, defied Berlusconi by indicating he would vote to support Letta’s government. With Alfano, other current ministers and at least 25 rebels from Berlusconi’s Popolo della Libertà (PdL, People of Freedom) prepared to do the same, Berlusconi himself relented at the last minute and instructed all of the PdL’s senators to support Letta, who thereupon easily won a vote of no confidence by a margin of 270 to 135. Letta leads an unwieldy grand coalition of center-right PdL senators, senators from Letta’s center-left Partito Democratico (PD, Democratic Party) and a handful of centrist, Christian Democratic and other pro-reform senators who support former technocratic prime minister Mario Monti.

The United States isn’t the only country in the world hurtling toward a governance crisis this week.

On Saturday, former Italian prime minister Silvio Berlusconi pulled the five center-right members out of the governing coalition that’s been headed for five months by center-left prime minister Enrico Letta (pictured above, right) and called for snap elections. The Italian stock market plunged this morning, Italian debt yields are already slightly rising and, once again, Italy, despite the best efforts of president Giorgio Napolitano, may well be headed to its second set of elections within 12 months — a move that would introduce new uncertainty within the eurozone at a time when most European leaders and global investors hoped the worst of the European economic crisis was over.

The big question is whether this truly marks the onset of another government collapse in Italy’s long-running political drama. There’s reason to believe it’s more the last gasp of a disgraced former leader than a principled stand over competing visions for Italy’s budget and finances. Berlusconi will shortly begin a year-long prison sentence (though due to his age, it’s likely to be house arrest or community service) after exhausting his appeals of a tax fraud conviction stemming from his leadership of Mediaset. Berlusconi also faces appeals for conviction on charges of paying for sex with a minor and abuse of power in trying to cover it up that carries a seven-year prison sentence. Most immediately, however, Berlusconi is angry that Italy’s parliament hasn’t lined up to lift a public service ban that now applies to Berlusconi in the wake of his tax fraud conviction. At age 77 and 19 years after he first become Italy’s prime minister, Berlusconi faces the indignity of being stripped of his senatorial seat in October and being banned from the next election.

It’s never smart to bet against Berlusconi, whose wealth, media power and longevity in power makes him easily the most influential political leader in Italy — even today. In the February parliamentary elections, he boosted the Italian center-right (centrodestra) coalition to within a razor-thin margin of defeating the center-left (centrosinistra) coalition. But it’s not hard to see the latest political moment as Berlusconi lashing out in order to pull one last rabbit out of his magical political hat. Earlier today, Berlusconi accused Napolitano of colluding with Italian judges against him.

If Berlusconi can bluster his way to early elections, he could potentially bring about a new parliament, especially with the center-left fractured ahead of a leadership election on December 8. But that’s a big ‘if,’ and as Monday closed in Rome, there were signs that members within Berlusconi’s ranks were none too pleased with his strategy.

The center-left Partito Democratico (PD, Democratic Party), which narrowly won February’s parliamentary elections, holds a strong majority in the Camera dei Deputati (House of Deputies) due to election laws that provide a ‘winner’s bonus’ to the party with the most support. It’s more chaotic in the Senato (the Senate), where seats are allocated on a state-by-state basis and where no party holds an absolute majority:

Realistically, that means no government can form without the Democrats, but that the Democrats alone cannot govern without allies in the Senate. When the protest, anti-austerity Movimento 5 Stelle(M5S, the Five Star Movement) refused to enter a governing coalition with the Democrats, the only potential coalition was a ‘grand coalition’ between the Democrats and Berlusconi’s Popolo della Libertà (PdL, People of Freedom). Berlusconi has since rechristened the PdL as Forza Italia, the name of his original center-right political party in the 1990s.

So Berlusconi assented and Letta formed the government in May after a gridlocked spring when Italy had merely a caretaker government and its parliament failed numerous times to elect a new president — it ultimately reelected Napolitano to another seven-year term. For good measure, five regional senators and 19 centrist senators from the coalition headed by Mario Monti (the former pro-reform, technocratic prime minister between 2011 and 2013) joined the coalition. That gave Letta a coalition in the upper house that includes 233 out of the 315 elected senators.

But the coalition has never been incredibly stable, as you might expect. On the surface, the current crisis revolves around the budget (just like in the United States) — Letta and the Democrats want to allow Italy’s VAT to rise from 21% to 22%, and Berlusconi prefers to find savings within the budget to keep the VAT from rising. The failure to find those savings last Friday precipitated Berlusconi to pull the PdL’s ministers out of the government. The risk is that the budget deficit will rise above 3% of Italian GDP, violating the European Union’s fiscal compact and potentially causing a rise in Italian debt yields. Continue reading Does this week’s political crisis in Italy represent Berlusconi’s last stand?→

Although Italy’s highest court upheld a one-year sentence against former Italian prime minister Silvio Berlusconi today, the longtime center-right leader made it clear that he intended to remain in the thick of Italian politics for the next year and then some.

Berlusconi’s legendary legal troubles outdate even his nearly two-decade political career, but today was the first time that Italy’s Corte di Cassazione (Court of Cassation) upheld any of Berlusconi’s multiple criminal convictions. The decision upheld Berlusconi’s conviction for tax fraud and upheld the four-year sentence, though the actual sentence has been reduced to one year, thanks to an amnesty passed into law by former center-left prime minister Romano Prodi back in 2006. But Berlusconi is unlikely headed to prison anytime soon, due to his advanced age (76) and the fact that this is technically his first final conviction — Berlusconi has successfully appealed previous convictions or otherwise evaded jail time due to immunity while in public office or through the expiration of the statute of limitations.

Furthermore, the court remanded for review by the lower appeals court in Milan a previous five-year ban on holding public office, which the court ruled should not last five years, but instead between one and three years. Berlusconi’s public service ban will therefore need to be confirmed by the upper house of Italy’s parliament, the Senato (Senate).

That creates an immediate tripwire for prime minister Enrico Letta’s ‘grand coalition’ government that has brought Berlusconi’s Il Popolo della Libertà (PdL, the People of Freedom) together with the center-left Partito Democratico (PD, Democratic Party). Together, the two parties hold a majority in the Senate, but the PdL holds just 98 out of 315 seats. Berlusconi’s ally, the Lega Nord (Northern League), holds an additional 18 seats, even though it’s chosen not to join the current governing coalition. So in order to evade the public office ban, Berlusconi will need the support of the Letta and the Democrats, and there’s a real danger that Berlusconi will threaten to bring the Letta government down unless they back him.

But that’s assuming the Letta government even makes it that far, in light of an economy that shrank by 0.6% in the first quarter of 2013 alone and a generation-high unemployment rate of 12.2% as of May 2013. Despite Letta’s hopes to reform Italian finances, the PdL campaigned on reversing an unpopular property tax levied by the previous technocratic government of prime minister Mario Monti last year, so Berlusconi and his allies are pushing to scrap the property levy and to prevent a proposed 1% increase in the highest bracket of Italy’s value-added tax. Meanwhile, Berlusconi’s top lieutenant, deputy prime minister and interior minister Angelino Alfano is under fire for the swift deportation of the wife and six-year-old daughter of Kazakh dissident oligarch Mukhtar Ablyazov in May. Letta’s minister for integration, Cécile Kyenge, and Italy’s first black government minister, has faced a barrage of racial slurs — most recently, an opponent threw bananas at her during a speech last week.

Monti, who formed the centrist, pro-reform Scelta Civica (Civic Choice) in advance of February’s election, and who, alongside other centrist allies, forms the third and smallest bloc in the governing coalition, is allegedly so frustrated that he was ready to resign as leader of his own party yesterday.

The volatile Berlusconi is also appealing a preliminary conviction of paying for sex with underaged Moroccan dancer Karima el-Mahroug and of abuse of office after trying to pressure local authorities to release the dancer after an alleged theft.

After today’s verdict, Berlusconi lashed out in a television address (pictured above) against what he called an irresponsible judiciary, as he’s done so many times before — he attacked the judiciary as a dangerous and unelected branch of government that began with the judicial investigations of the Tangentopoli (Bribesville) scandal in 1992 and 1993 that so thoroughly wiped out the longstanding Italian political order that it marks the unofficial designation between Italy’s ‘first’ and ‘second’ republics. Berlusconi reiterated plans, unveiled just last week, to change the name of his party back to its original name, Forza Italia, in a bid to attract younger voters, renewing speculation that he may be preparing to pass his political baton to his 46-year-old daughter, Marina Berlusconi.

So Berlusconi may well just try to roll the dice by bringing the coalition down immediately and move for early elections now.

He would do so knowing that the Democratic Party itself remains hopelessly divided and leaderless — Letta, though he is prime minister, remains the deputy prime minister of the party, pending a still-unscheduled leadership election later this year. Though 38-year-old Florence mayor Matteo Renzi is the most popular politician in the country, having harnessed the frustration of Italians with the entire spectrum of current political leadership, his potential leadership of the party remains controversial. It could well result in the disintegration of Italy’s Democratic Party, which formed in 2007 after a gradual melding of former moderate Italian Communists and former liberal Christian Democrats.

The latest polls show, essentially, a toss-up: the centrosinistra would win 33.7%, the centrodestra would win 34.3%, Grillo’s Five Star Movement would win 20.6%, and Monti’s centrists would win just 6.1%.

Letta will now seek a ‘grand coalition’ government with Silvio Berlusconi and the Popolo della Libertà (PdL, People of Freedom). Former centrosinistra (center-left) leader Pier Luigi Bersani repeatedly refused previous attempts at a ‘grand coalition’ in post-election talks since February. While it means more short-term stability for Italy and it likely means Italy won’t return to the polls this summer or even perhaps this year, it seems unlikely that the Letta-led coalition will endure for a full five-year term, which means that Italian government will proceed with one eye looking toward the next elections.

So who is Letta and what would a Letta-led government mean for Italy?

The basics are rapidly becoming well-known: he’s from Pisa, he was a European affairs minister in the government of Massimo D’Alema in the late 1990s, he was first elected a member of Italy’s lower house, the Camera dei Deputati (House of Deputies), in 2001, and he was a European Parliament MP from 2004 to 2006. He was a candidate for the leadership of the Democratic Party when it was first established in 2007, though he lost that race to the wide favorite, former Rome mayor Walter Veltroni. His uncle, Gianni Letta, is one of Berlusconi’s top advisers, and was himself the PdL candidate for the Italian presidency back in 2006 when Napolitano was first elected.

As OpenEuropewrites this morning, Letta’s both pro-European and apparently anti-austerity, making him a good bridge between outgoing prime minister Mario Monti and the more populist elements in the PD, the PdL and the Movimento 5 Stelle(M5S, the Five Star Movement).

In other words, Napolitano has appointed a Prime Minister with solid European credentials and who can credibly argue for an easing of austerity in the EU. Quite smart.

At age 46, he would be the second-youngest prime minister in post-war Italy, much younger than Giuliano Amato, the 74-year-old who led center-left (largely technocratic in nature) governments in 1992-93 and 2000-01. Amato had been mentioned as Napolitano’s favored candidate since Napolitano’s reelection as president on Saturday, and Florence mayor Matteo Renzi had also been thought to be a contender for prime minister. Letta, in contrast, was a bit of a surprise, though his appointment is not incredibly outlandish.

In many ways, Letta melds the best of both an Amato appointment and a Renzi appointment.

Like Renzi, he’s part of a new generation of Italian leadership, but Berlusconi apparently scoffed at the elevation of the most popular center-left politician in Italy, and Renzi himself is probably relieved not to have to lead a coalition government that will leave much of the center-left disillusioned and that could still lead to the disintegration of Italy’s still-young Democratic Party.

Although Amato once served as my professor in Italy, I believe he would have been a problematic choice for a ‘technocratic’ government for two reasons.

The first is that Italy has already had a technocratic government since November 2011, and the intervening February 2013 election results should clearly inform the creation of the next government. No one voted for Letta, perhaps, but his government will be political, not technocratic, and it will have a political cabinet and an agenda hammered out between the two largest forces in the Italian parliament. Despite what remains a very wide gulf between Berlusconi and the centrosinistra, the German ‘grand coalition’ example remains a best-case lodestar for the newly minted Letta government.

The second is that Amato, fairly or unfairly, remains a link not only to Italy’s past, but to the collapse of its first republic. Though he’s one of the few members of Italy’s old Socialist Party to make a successful transition to the second republic (he served as the minister of the interior in the late 2000s under prime minister Romano Prodi), his appointment would symbolize so much of what’s wrong about Italian political leadership. As the septuagenarian prime minister of an octogenarian president, I fear Amato — no matter how competent a prime minister — would have highlighted the rule of an Italian gerontocracy that refuses to leave the stage after decades in power.

With the failure of centrosinistra (center-left) leader Pier Luigi Bersani to form a government after a week of talks, Italian president Giorgio Napolitano now faces a tough 24 hours of consultations with the other key players in the Italian parliament.

The path now becomes perilous — for Napolitano, above all, who remains just about the only respected public official left in Italy:

Of course, as I noted earlier today, upon further consultation with the various players on Friday, Napolitano could give Bersani, the leader of the Partito Democratico (PD, Democratic Party), more time to cobble together a government. That doesn’t seem so incredibly likely to succeed.

Napolitano could also appoint Bersani as prime minister to try to win a vote of confidence in the upper house of the Senato, essentially daring Silvio Berlusconi’s centrodestra (center-right) coalition to reject him, though it seems unlikely that Napolitano would do so if there’s a chance Bersani would lose the vote. If Bersani loses, he’ll be left as a discredited caretaker prime minister, and Napolitano will have suffered a political defeat as well, limiting his future maneuverability.

Another option is simply to leave prime minister Mario Monti (pictured above shaking hands with Italian senator Emma Bonino) in place as a pro forma caretaker — this is the ‘Belgian’ option: a parliament with no real government. That could well cause Italian bond yields to rise or otherwise call into question Italy’s capability for long-term reform. That’s especially true if you think the eurozone is primarily a political crisis rather than an economic one.

Another option, of course, would be for Napolitano to appoint a new technocratic prime minister, though that carries risks as well, especially coming after the political rejection of Monti’s pro-reform, centrist coalition in the February elections. Monti was appointed as a technocratic prime minister in November 2011 with the support of both the PD and Berlusconi’s Popolo della Libertà (PdL, People of Freedom). In late 2011 and early 2012, Monti’s government instituted reforms to reduce tax evasion, increased taxes, pension reform that reduces early retirement, and he instituted some modest labor reforms as well, though they’ve not had the sweeping effect Italy’s economy may need to revitalize its labor market.

But Monti’s government stalled and Italy went to early elections in February when Berlusconi and the PdL pulled its support from Monti’s government, and Berlusconi and Beppe Grillo, leading the protest Movimento 5 Stelle(M5S, the Five Star Movement) actively ran against Monti’s reforms and attacked Monti as little more than an errand-boy for Brussels and Berlin.

So if neither Bersani nor Monti appear workable choices, to whom could Napolitano turn in the event of yet another technocratic government? Such a government would have a very limited mandate for, say, electing a new president (which the new parliament must accomplish in May 2013 before new snap elections could even be held), carrying out the execution of Italy’s 2013 budget and perhaps even overseeing a change in the election law.

When elections were called in Italy late in 2012, the centrosinistra (center-left) coalition united around Pier Luigi Bersani thought, on the basis of polls that showed Bersani (pictured above, left) with a wide lead, that it was nearly assured that they would easily win a five-year mandate to govern Italy.

Instead, they may have won just a five-day mandate to show that they can win a confidence vote in both houses of Italy’s parliament.

The leader of Italy’s Partito Democratico (PD, Democratic Party), Pier Luigi Bersani, will have the first formal opportunity to form a government after three days of talks between Italy’s president Giorgio Napolitano (pictured above, right) and the various party leaders, including former technocratic prime minister Mario Monti, who ran on a platform of extending his reform program; former prime minister Silvio Berlusconi, whose centrodestra (center-right) coalition nearly outpaced Bersani’s coalition; and Beppe Grillo, the leader of the Movimento 5 Stelle(the Five Star Movement), who himself did not run for a seat in the Italian parliament.

Napolitano, in a rare speech today, pleaded for a solution, arguing that institutional stability is just as important as financial stability.

Yesterday, Bersani called for a grand ‘governo di cambiamento,’ a government of change that would draw from all of the parties in the parliament. It’s not immediately clear, however, what exactly Bersani would do with such a government or that the announcement would significantly shake up the coalition talks.

Bersani will have until March 26 — Tuesday — to show that he can pull together a patchwork vote of confidence. Otherwise, Napolitano will conduct further talks with the party leaders in search of a Plan B.

In the February 2013 elections, the centrosinistra won an absolute majority of the seats in the 630-member Camera dei Deputati (House of Deputies) because under Italian election law, the winner, by whatever margin, of the nationwide vote automatically wins 54% of the seats. So Bersani commands a majority in the lower house, though he does so after winning a surprisingly narrow victory (29.54%) over Berlusconi’s centrodestra (29.18%) and Grillo’s Five Star Movement (25.55%):

The current crisis of governance in Italy springs from the fact that there’s no similar ‘national winner’s bonus’ for the upper house, the Senato, where the centrodestra actually won more seats than the centrosinistra. That’s because there’s a regional ‘bonus’ — the party with the most support in each of Italy’s 20 regions is guaranteed an absolute majority of the senatorial seats in that region. As Berlusconi’s coalition won so many of the contests in Italy’s largest regions (i.e., Piedmont, Sicily, Campania), however narrowly, he won the largest bloc in the Senato:

Since then, we haven’t seen an incredible amount of action, because the parliament only sat for the first time last weekend, when it elected speakers to both the lower and upper houses. None of those are likely to happen in any meaningful sense, but there are small variations on each that could keep Italy’s government moving forward, if only for a short-term basis to implement a narrow set of reforms (e.g., a new election law) and to elect a new president — Napolitano’s term ends in May.

Former center-right foreign minister Franco Frattini is far from the fray of Italian politics these days — he didn’t run in last week’s Italian elections and he’s currently a candidate to replace Anders Fogh Rasmussen as the secretary general of the North Atlantic Treaty Organization.

Nonetheless, Frattini (pictured above) spoke in Washington yesterday to the American Israel Public Affairs Committee as well as to a small audience at Johns Hopkins University’s School of Advanced International Studies, and amid a set of thoughtful remarks about Italy’s election and its post-vote gridlock, one remark stood out in particular — that Italy should revise its electoral law by adopting the system currently in use by France, a two-round system whereby deputies are elected in single-member constituencies.

When election results came in last Monday, despite pre-election polls showing that the broad centrosinistra (center-left) coalition headed by Pier Luigi Bersani would win, returns showed Bersani’s coalition doing poorer than expected. The broad centrodestra (center-right) coalition headed by former prime minister Silvio Berlusconi and the anti-establishment, anti-austerity Movimento 5 Stelle(M5S, the Five Star Movement) founded by blogger and activist Beppe Grillo, both polled much better than expected — so much so that Italy now has a hung parliament. A centrist coalition headed by outgoing technocratic prime minister Mario Monti placed far behind in fourth place.

A ‘winner bonus’ for Bersani in Italy’s lower house, Camera dei Deputati (House of Deputies), based on the fact that his coalition (just barely) won a greater number of votes than any other coalition or party, means that the center-left will command a 340-seat absolute majority in the Camera.

But because seats are awarded on a regional basis to Italy’s upper house, the Senato (Senate), no one emerged with anything close to a majority — and it became clear that even a widely mooted Bersani-Monti coalition would fall far short of a majority.

So election law reform has become a top-shelf issue in the wake of last week’s elections, not only because of the inconclusive result last week, but because it’s one of a handful of items that both Grillo and Bersani, the leader of the center-left Partito Democratico (PD, Democratic Party), agree upon, so reform could be a key element of any agenda that a short-term Bersani-Grillo alliance might enact before a new election.

Even members of Berlusconi’s Popolo della Libertà (PdL, People of Freedom) want to reform the election law, and even Roberto Calderoli, who pushed the law through the Italian parliament, has called it a ‘porcata,’ a pig’s dinner.

But agreeing that the election law is a mess and agreeing on a new law are two different things.

So what have Italy’s three most recent voting systems — the postwar open-list proportional representation system, the mixed, mostly first-past-the post system adopted in 1993, and the closed-list proportional representation system (with a ‘winner bonus’) adopted in 2005 — historically meant for stability or chaos in Italy’s parliament?

Although relatively more attention has been on Italy’s general election and its aftermath and on Roberto Maroni’s victory in the Lombardy regional elections, Nicola Zingaretti’s victory as the next regional president of Lazio has launched the career of a new face of the next generation of Italy’s political leadership while delivering a stinging defeat to one of Italy’s most prominent far-right figures.

Zingaretti (pictured above), the candidate of the center-left Partito Democratico (PD, Democratic Party), won a whopping victory over Lazio’s former regional president Francesco Storace, leader of La Destra (The Right), a nationalist conservative party in Italy, Davide Barilliari, the candidate of the Movimento 5 Stelle(M5S, the Five Star Movement) and Giluia Bongiorno, who led a centrist coalition in the election.

The result leaves the center-left in control of 28 seats in Lazio’s regional parliament, with 13 for the center-right, seven for the Five Star Movement and just two for Bongiorno’s centrists.

Zingaretti, elected to the European Parliament in 2004 and thereafter elected as president of the province of Rome in 2008, is the latest center-left star to emerge out of Roman politics, and he could well use the Lazio presidency as a springboard into a future in national politics. Former Rome mayor Francesco Rutelli (unsuccessfully) led the center-left in the 2001 general election and subsequently served as prime minister Romano Prodi’s minister of culture and tourism. Rutelli’s successor as Rome mayor, Walter Veltroni, helped found the Democratic Party in Italy, and thereupon led it (again, unsuccessfully) in the 2008 general election.

Zingaretti’s first task will be to restore integrity to regional government in Lazio, Italy’s third-most populous region. The outgoing incumbent, the PdL’s Renata Polverini, resigned early after being implicated in a funding scandal whereby public officials were using government funds for private use. Her predecessor, the center-left Piero Marrazzo, lost reelection after he was blackmailed over a video recording of Marrazzo engaging the services of a transsexual prostitute.

More immediately, however, the strength of Zingaretti’s campaign may well have helped Pier Luigi Bersani’s centrosinistra (center-left) coalition win victory in the senatorial contest in Lazio — Bersani’s coalition won just 32.3% against former prime minister Silvio Berlusconi’s centrodestra (center-right) coalition, which won 28.8%, a much smaller margin of victory than Zingaretti posted over Storace.

The landslide defeat is a setback for Storace, president of Lazio from 2000 to 2005, and one of the most well-known members of Italy’s nationalist right.

For what it’s worth, we have the final results from the weekend’s Italian election from the interior ministry.

As exit polls indicated and early resulted showed, Pier Luigi Bersani’s centrosinistra (center-left) coalition won 29.54% in the race for Italy’s lower house of parliament, the Camera dei Deputati (House of Deputies) to just 29.18% for former prime minister Silvio Berlusconi’s centrodestra (center-right) coalition, 25.55% for Beppe Grillo’s protest Movimento 5 Stelle(M5S, the Five Star Movement) and just 10.56% for technocratic prime minister Mario Monti’s centrist coalition.

As the winner of the largest vote share, Bersani’s coalition is entitled to a majority of 54% of the seats in the lower house:

In the upper house, the Senato (Senate), there’s no such ‘seat bonus’ at the national level; instead, the winner in each of Italy’s 20 regions gets a ‘bonus’ in that it wins 55% of the seats in each region, meaning that the centrodestra actually edged out the centrosinistra in total number of senatorial seats, even though Bersani’s coalition won 31.42% and Berlusconi’s coalition won just 30.58%. That means, of course, if the Senato‘s seats were awarded on the same basis as the Camera‘s seats (they cannot be out of constitutional considerations with respect to Italy’s regions), Bersani would be the clear prime minister today.

The reason for the center-right’s senatorial victory is pretty clear when you look at the region-by-region winners (as shown the map below, with blue for centrodestra and red for centrosinistra):

As you can see, not only did Berlusconi nearly sweep the mezzogiorno, the swath of southern Italy that contains Campania and Sicily, (the second- and fourth-largest regions), his coalition won Lombardy, the largest prize in the center-north of the country. His coalition also came very close to winning Piedmont in the northeast and Lazio in the center as well, and the centrosinistra leads in total votes only because it was able to rack up large margins in its historically reliable heartland in the regions of Tuscany and Emilia-Romagna.

It’s in particular fascinating to take a look at the party-level vote, especially in the lower house elections, because you get a better sense of how the coalition system and the national ‘seat bonus’ system really has skewed the next parliament to favor the centrosinistra (center-left) coalition, despite the fact that Grillo’s Five Star Movement actually outpolled not only Berlusconi’s party, the Popolo della Libertà (PdL, People of Freedom), but also even Bersani’s party, the Partito Democratico (PD, Democratic Party), though it didn’t outpoll the broader center-left and center-right coalitions:

Here, however, is the breakdown of seats by party:

The disparity between vote share and awarded deputies shows how important coalitions have become in Italian elections since Berlusconi’s government changed Italy’s election law in 2005, which transformed the previous system — in operation from the early 1990s — a split vote that awarded most of the seats on a ‘first-past-the-post’ basis and some on a proportional representation basis to the current ‘proportional representation’ system (with a national ‘bonus’ in the lower house and a regional ‘bonus’ in the upper house).* Continue reading More thoughts on the final Italian election results and Italy’s electoral law→

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Suffragio attempts to bring thoughtful analysis to the political, economic and other policy issues that are central to countries outside of the US -- to make world politics less foreign to the US audience. Suffragio focuses, in particular, on those countries and regions with upcoming or recent elections.